Although the world of cryptocurrency is exciting and innovative, the platforms where these digital assets are stored may sometimes not be safe at all. The hacking incident on the Japan-based Coincheck exchange in early 2018 also drew attention to the security vulnerabilities of these platforms. Let’s examine the details together.
A cryptocurrency exchange based in Japan Coincheck, It was founded in 2012 by Koichiro Wada and Yusuke Otsuka and reached a large user base in a short time.
However, in 2018, cyber attackwould change the fate of Coinheck by deepening investors’ concerns about security…
On January 26, 2018, approximately 523 million NEM coins were stolen from the Coincheck exchange by hackers!
The incident took place in the morning and the stock market reported the attack for about 8 hours later noticed.
Following the incident, the stock market quickly collapsed across all currencies. Even though it stopped shooting The stock market was too late to notice the attack.
The amount stolen was approximately 58 billion yen ($532.6 million) It was around.
In fact, this was due to the fact that the exchange stored NEM tokens in a hot wallet connected to the internet.
Hot wallets are more vulnerable to hackers because they have a constant internet connection. easy target could be taken.
For this reason, compared to cold wallets It was a big mistake for the exchange to store the assets in such a wallet because they were not protected.
Cold wallet, which is a more secure method, provides offline storage of assets, while Coincheck provides technical inadequacies and personnel shortages He explained that he could not use this method because of this.
That’s why Coincheck is for hackers became an easy target And what happened to investors’ assets…
After the hacking incident, the price of NEM also experienced a big decrease.
In the aftermath of the attack, Coincheck told its investors approximately $440 million repayment Although the company decided to do so, this incident raised serious questions about the security of crypto exchanges not only in Japan but all over the world.
Although the Japanese government did not approve of the 2014 Mt. Although Coincheck took steps to regulate crypto exchanges after the Gox scandal, regulations are not sufficient It was showing.
To summarize, the Coincheck scandal is about how risky it can be to store large amounts of money on centralized exchanges. a bitter lesson took its place in history as.
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